As your textbook points out, U.S. firms continue to look overseas for opportunities to increase shareholder value. Today, dozens of U.S. manufacturers and service firms receive more than half of their revenues from foreign sales. This trend is even more pronounced in profits. For example, according to the Associated Press, more than 75% of Coca-Cola's profits come from geographic areas outside of North America (Choi, 2014). As such, managers need to know more about multinational companies, including the different types of risks faced when conducting business overseas. Operating internationally may provide firms with new opportunities, but it also presents a new set of financial risks. Although basic finance principles already learned apply to multinational financial management, firms have adopted added strategies for dealing with variations. This week, you will study the key differences between domestic and multinational financial management, and examine how firms manage the complexities of operating internationally. Learning Objectives Students will: Analyze key differences between multinational and domestic firms Evaluate different types of risk faced by multinational firms Analyze the impact of exchange rate systems on funding decisions Evaluate the impact of exchange rates on the rate of return on projects.